30 Percent Tax On Power Bills Imposed By Biden Administration For Crypto Mining

On Tuesday, the Biden administration proposed a phase-in period with a 30 percent tax on power bills that are used in cryptocurrency mining firms.

30 Percent Tax On Power Bills Imposed By Biden Administration For Crypto Mining (PHOTO: Engadget)

Biden Proposes 30 Percent Electricity Tax

Biden Administration imposes a 30 percent tax designed to counter the environmental and economic effects of cryptocurrency mining and it has included the proposal in its budget for the fiscal year of 2024.

Biden’s Budget for Fiscal Year 2024, was already released on the White House portal stating that the Digital Asset Mining Energy (DAME) excise tax where formally introduced as an effective way to resolve the long-standing nationwide challenges and the emerging dangers of cryptocurrency mining. It is found the economic and environmental costs of current practices for mining crypto assets or commonly known as crypto mining are damaging the environment.

Moreover, also Biden’s other reason for the additional 30 percent tax implementation in electricity bills is that those crypto mining firms are not properly paying the “full cost they set on others,” which contains high energy costs.

If the implementation of the Crypto Mining Tax in the United States is too high, then this could result that miners could move to a more favorable jurisdiction.

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The Crypto Mining In The US

Crypto Mining was well-known during the pandemic when most people usually worked from home and looked for t additional income. However, Crypto mining hurts the environment because it uses massive amounts of electricity.

The 30 percent tax on crypto mining would be impacting Bitcoin miners compared to the rest of the crypto market, as it is the only significant crypto network that uses proof-of-work (PoW) as its underlying method for achieving consensus. Furthermore, other networks Ethereum and BNB Chain, use an alternative method known as proof-of-stake (PoS), which uses much less energy.

Hence, the Biden administration is looking to curb any financial benefit ts companies gain by imposing a new tax on electricity used for crypto mining. According to the administration, crypto-mining operations have an outsized impact on energy consumption in the United States.

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